I. Field of the Invention
The present invention generally relates to methods and systems for distributing stock in a distribution network. More particularly, the present invention relates to methods and systems for distributing stock elements among a plurality of target locations in a distribution network.
II. Background Information
Deployment is a decision making process for moving or distributing stock in a distribution network from a source location that has stock elements to the target locations that need the stock elements. The source location may replenish the stock supply of the target locations according to each target's past due, current, or future stock requirements. Quantities deployed to any target location may be based on, for example, the target's current situation, its on-hand inventory, its forecasted demand, or its fixed requirements. The quantity of stock required by a target location may be calculated when the source location deploys the stock.
In some situations, the target locations may need more stock than the source location has available to deploy. For such cases, conventional deployment methods include distributing a deficient quantity of stock on a pro-rata basis. For example, if four target locations require four (4) parts each (which is 16 in total), but the source has only twelve (12) parts to distribute (which is three-fourth of the total requirement), conventional distribution strategies result in simply providing three-fourth of the required quantity to each target (which is 3 parts for each target). Thus, the conventional strategy is to spread the shortage out on a pro-rata basis. This often causes problems because not all targets have an equal need or requirement for the parts. In other words, the conventional strategy ignores the fact that some target locations may have a more urgent need for the stock than other target locations.
In view of the foregoing, there is a need for methods and systems for deploying stock more optimally among target locations in a distribution network. Furthermore, there is a need for optimally deploying stock when an insufficient quantity of deployable stock exists to meet the requirements for all of the target locations.